What is EMI in a Personal Loan?
EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay your loan. It includes two parts:
- Principal – The original amount borrowed.
- Interest – The cost charged by the bank or lender for giving the loan.
This amount remains the same every month, making it easier to plan your budget.
EMI Calculation for ₹10 Lakh Personal Loan for 6 Years
When you borrow ₹10 Lakh for 6 years, your EMI depends mainly on:
- Loan amount (₹10 Lakh)
- Loan tenure (72 months = 6 years)
- Interest rate (varies between 10% – 18% per annum for most banks in India)
For example:
- At 10% interest rate, EMI will be around ₹18,500 per month.
- At 12% interest rate, EMI will be around ₹19,700 per month.
- At 15% interest rate, EMI will be around ₹21,600 per month.
A higher interest rate means a higher EMI and higher total repayment.
Factors That Affect Your EMI
Several factors can change how much you pay every month:
- Interest Rate – Lower rates = lower EMI.
- Loan Tenure – Longer tenure reduces EMI but increases total interest.
- Credit Score (CIBIL) – Higher score gets you better rates.
- Income Level – Banks offer flexible terms for salaried or self-employed individuals.
- Prepayment/Foreclosure – Paying early reduces interest burden.
Advantages of a 6-Year Loan Tenure
- Lower EMI – Payments are spread across 72 months.
- Budget-Friendly – Easier for middle-income earners to manage.
- Flexible Repayment – Suitable for long-term financial planning.
However, keep in mind that longer tenure = higher total interest paid.
Tips to Reduce Your EMI Burden
- Compare interest rates across banks before applying.
- Choose a balance between EMI affordability and total interest.
- Make part-prepayments whenever you have extra funds.
- Improve your credit score to qualify for lower rates.
- Use an EMI calculator online to plan before borrowing.
Best Banks for Personal Loans in India (2025)
Here are some top banks offering competitive personal loan rates:
- SBI Personal Loan – Starting from 11% p.a.
- HDFC Bank – Starting from 10.75% p.a.
- ICICI Bank – Flexible tenure with rates from 11% p.a.
- Axis Bank – Quick approval with rates around 12% p.a.
- Kotak Mahindra Bank – Attractive offers for salaried professionals.
Final Thoughts
A ₹10 Lakh personal loan for 6 years is a good choice if you want manageable monthly payments. Always calculate your EMI in advance, compare multiple banks, and choose a loan plan that fits your financial comfort.
Remember: A slightly lower interest rate or shorter tenure can save you lakhs in total repayment.
FAQs
Q1. How much EMI for ₹10 Lakh loan for 6 years at 12%?
Around ₹19,700 per month.
Q2. Can I reduce my EMI after taking a loan?
Yes, through part-prepayment, refinancing, or increasing tenure.
Q3. Is it better to take a 3-year or 6-year loan?
A 3-year loan has higher EMI but lower interest; a 6-year loan has lower EMI but higher interest.
Q4. Does credit score affect EMI?
Yes. A higher credit score means lower interest rates, which reduces EMI.
Q5. Can I close my personal loan early?
Yes, most banks allow foreclosure or prepayment after 6–12 months with small charges.
Disclaimer: This article is for general information only. The interest rates and terms mentioned in it depend on the policies of the bank and NBFC. These may change from time to time. Before taking any type of loan, get complete information from your bank.